Press release
2025-2034 Online Fashion Retail Market Evolution: Disruptions, Innovations, and Untapped Opportunities
Online Fashion Retail
What Is the Expected CAGR for the Online Fashion Retail Market Through 2025?
The growth of the online fashion retail market has been significantly swift in the last few years. With an expected increase from $45.6 billion in 2024 to $53.61 billion in 2025, the compound annual growth rate (CAGR) stands at 17.6%. Factors contributing to the growth during the historical period include heightened global internet usage, the emergence and growth of e-commerce, widespread adoption of smartphones, influence of social media, and increased disposable incomes.
What's the Projected Size of the Global Online Fashion Retail Market by 2029?
The size of the online fashion retail market is anticipated to witness swift expansion in the upcoming years, reaching a significant mark of $101.52 billion in 2029 with a compound annual growth rate (CAGR) of 17.3%. This surge during the forecast period is linked to factors such as omni-channel retail strategies, expansion in worldwide markets, sustained e-commerce expansion, initiatives focusing on sustainability, and the emergence of social commerce. Key trends projected within this forecast period encompass personalized shopping experiences, advancement in technology, the uptake of digital platforms, the application of augmented reality, and digital payment systems.
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Top Growth Drivers in the Online Fashion Retail Industry: What's Accelerating the Market?
The anticipation of growth in the online fashion retail market can be attributed to the emerging preference for digital shopping, prompted by convenience and safety considerations. Digital shopping, synonymous with online shopping, pertains to procurement of goods or services across the internet using a mobile app or a website. The shift towards digital shopping is driven by factors such as the comfort of purchasing from home, the broad variety of products available online, and the ability to effortlessly price check and find deals, thereby presenting a more attractive and streamlined choice for customers. Specifically in fashion retail, digital shopping provides added benefits such as an expansive product range and a personalized retail experience facilitated by cutting-edge technologies such as artificial intelligence and virtual try-ons. For instance, as per the 2022 European ecommerce report prepared by a Europe-based retail and wholesale entity, the proportion of internet users who made online purchases hit 74% in 2021, with a predicted rise to 76% in 2022. Consequently, the tilt in preferences towards digital shopping for its convenience and safety aspects is fuelling the growth of the online fashion retail market.
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What Trends Will Shape the Online Fashion Retail Market Through 2029 and Beyond?
Leading businesses in the online fashion retail market like H & M Hennes & Mauritz AB are integrating state-of-the-art technologies such as virtual reality (VR) and augmented reality (AR) in a move to enrich the online shopping venture and secure a competitive advantage. AR filters, which are digital enhancements utilized in real-time camera feeds typically in applications or social media platforms, are being employed to modify or improve the user's environment or looks. Notably, in November 2022, the Swedish clothing entity introduced five AR filters via its app as a part of its revolutionary metaverse design story series. The project, a collaboration with the Institute of Digital Fashion from the United Kingdom, featured AR fashion lenses powered by Snap, which allowed virtual outfit try-ons, thus bridging the digital and physical worlds. This strategy enables customers to display their style both offline and online, thus promoting brand engagement and interaction.
What Are the Main Segments in the Online Fashion Retail Market?
The online fashion retail market covered in this report is segmented -
1) By Product Type: Clothes, Footwear, Jewelry, Cosmetics, Bag And Accessories
2) By Model Type: Business To Business, Business To Consumer
3) By End User: Children, Men, Women
Subsegments:
1) By Clothes: Women's Apparel, Men's Apparel, Kids' Apparel, Sportswear, Lingerie And Sleepwear, Outerwear (Jackets, Coats), Swimwear
2) By Footwear: Women's Footwear, Men's Footwear, Kids' Footwear, Sports Footwear (Running Shoes, Sneakers), Casual Shoes, Formal Shoes, Boots
3) By Jewelry: Necklaces And Pendants, Earrings, Bracelets And Bangles, Rings, Watches, Brooches And Pins
4) By Cosmetics: Skincare, Makeup (Face, Eyes, Lips), Haircare Products, Fragrances, Nail Care Products, Beauty Tools And Accessories
5) By Bags And Accessories: Handbags, Backpacks, Wallets And Purses, Belts, Sunglasses, Scarves And Shawls, Hats And Caps, Gloves, Travel Bags
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Which Top Companies are Driving Growth in the Online Fashion Retail Market?
Major companies operating in the online fashion retail market are Amazon.com Inc., Alibaba Group Holding Limited, Adidas AG, H & M Hennes & Mauritz AB, Nordstrom Inc., Levi Strauss & Co., Flipkart Private Limited, Saks Fifth Avenue LLC, Farfetch UK Limited, Ssense Inc., YOOX Net-a-Porter Group S.p.A., Depop Limited, Myntra Designs Private Limited, Shoppers Stop Ltd., Lane Crawford Joyce Group, MATCHESFASHION Limited, Smilegroup Entertainment Ltd, LimeRoad, Lyst Ltd., Paytm Mall, Yebhi, Styletag, Koovs plc, Yepme
Which Regions Will Dominate the Online Fashion Retail Market Through 2029?
North America was the largest region in the online fashion retail market in 2024. The regions covered in the online fashion retail market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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